§ Colonel WEDGWOODasked the Chancellor of the Exchequer whether he has made representations to the Canadian Government as to the loss which the 5 per cent. tax on dollar interest and dividends paid to English holders will cause the British Treasury; and whether it is to be levied on any interest on liquid trade balances held by English traders and manufacturers in Canada?
Mr. CHAMBERLAINI have not yet had an opportunity of seeing the text of the Canadian proposal. I am, therefore, not in a position to express any opinion as to the scope of the tax. I have no doubt, however, that the Canadian Government are aware of the terms of Section 27 of the Finance Act, 1920, in regard to relief from double Income Tax within the Empire. The precise extent to which the relief is applicable in the present case is uncertain, for it depends on the question as to how far the right of deduction would apply in the case of United Kingdom holders.